Item 4C AudioSOUTHLAKE
RECOMMENDATION
Declare Aqua Texas
property as surplus
Staff recommends that the city council declare the Aqua Texas Property as surplus.
Aqua Texas Properties
Background:
— 2004 Settlement agreement provisions
• Southlake purchased Indian Creek
and Lakewood Ridge water system
assets for $60,000
• Southlake pays Aqua Texas to
continue providing water for five
years
• Environmental assessment
• Southlake takes possession of the
well site properties
In 2004 the Southlake entered in to a settlement agreement with Aqua Texas to
purchase the water systems in the Indian Creek and Lakewood Ridge subdivisions
for the sum of $60,000.00. The agreement also provided that the city would pay
Aqua Texas to continue operating the well sites and providing water in the 2 for a
period of 5 years, after which the 2 parties would share the cost of an environmental
assessment of the property and deeds would be conveyed to the city. That process
is underway and the city will soon have ownership of the 2 parcels.
3
This aerial map shows the location to the well site properties. As you can see,
these sites small parcels at the back corner of, and adjacent to 4 neighbors. The
soda Ridge property is 7,500 square feet and the Homestead property is 2,500
square feet.
M
Aqua Texas Properties
Property Condition:
• Production capacity less than 25 -30
GPM
• No viable Chlorination equipment
• Municipal well production capacity
should be 600 -800 GPM
• Well property locations not suited for
commercial water production sites
The 2004 agreement states the rated production capacity of the well sites between
25 and 30 GPM for each location. Municipal wells are expected to operate in the
range of 600 to 800 GPM. The disinfection equipment in not functional and the
storage capacity at both site combined is less than 100,000 gallons. Because these
sites are located in residential backyards, commercial use of these properties isn't
appropriate.
5
Aqua Texas Properties
Financial Consideration:
— Estimated cost to clear property and plug
wells - $20,000
— Based on adjacent land values
• 4429 Soda Ridge (0.172 acre) - $14,000
• 4552 Homestead (0.074 acre) - $6,000
Recommendation:
Declare Aqua Texas property as surplus
and offer for sale as allowed by law
It will cost about $8,000 per per site to cap and plug the wells and an additional
$2,000 to remove the above ground buildings, storage and pressure tanks and
fencing. Based on the 2010 taxable land value of the 4 adjacent properties to each
site, they have the theoretical value of $20,000 combined. Staff recommends that
the city council declare these sites as surplus property and allow them to be sold as
allowed by law.
A
The sale of these properties links to the city's strategy map relative to the focus
areas of Performance Management and Service Delivery. The specific corporate
objective that is met by the sale is Improve performance of delivery and
operational processes
7
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The City of Southlake provides municipal services that support
•
the highest quality of
•
life for our residents and businesses. We do this by delivering outstanding
unrivaled quality in everything that we do.
value and
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highest convenience and unique spaces tier businesses to drive
top- C5 Promot
opportunities for
standards of within City and for enjoyment of a dynamic and
safety and region personal interests sustainable economic
partnerships and
volunteer involvement
security environment
BI Achieve B2 Collaborate with B3 Enhance resident B4 Provide
best select partners to quality of life and high quality
B5 Improve
performance B60ptimize "
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status in all City implement service business customer
sustainabil through service
disciplines solutions tY g
of delivery and use of
operational technology
processes
tourism
F1 Adhere to financial
F2 Invest to provide and F3 Achieve fiscal
management maintain high quality wellness
F4 Establish an
maintain eff
principles and budget public assets standards
internal co"
L1 Ensure our L2 Enhance L3 Attract, L4 Recog
people understand leadership develop and and
retain a
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in the orga
The sale of these properties links to the city's strategy map relative to the focus
areas of Performance Management and Service Delivery. The specific corporate
objective that is met by the sale is Improve performance of delivery and
operational processes
7
SOUTHLAKE
If you have any questions regarding this item, contact Bob Price at 748 -8097